I would find this option extremely useful. As well as code, I use git for documents (written in LaTeX), in which (if the editor is using soft wrapping) sometimes an entire paragraph will be in a single line. It would make sense for lines to wrap in this case. Highlighting changed words within lines (like FileMerge) would also be really useful in this case.

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It is not useful but imperative for comparing prose in plain text. Paragraphs can be one single ultra-long line if one relies on the text editor to soft wrap lines (and why wouldn’t anyone), so no soft wrapping makes the diff tool useless.

Of course, for plain text prose, lines as a unit of comparison does not make sense at all, so it would be even more useful if, on top of soft line wrapping, there was the option to compare differences at word level, inline, like `git --color-words` or Diff, Match and Patch’s diff

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